Spanish scrap prices have fallen again this week, further pressuring the rebar market, which is afflicted by lacklustre demand, market sources tell Steel Business Briefing.

Scrap has dropped another €10-15/tonne, taking shredded (grade E40) to €315-320/t delivered ($426-433/t) and new arising (E8) to €335-340/t del, sources concur. “Some mills are currently buying scrap, but production is quite low at all sites due to the poor demand (for finished products) coming from domestic users and North Africa,” a scrap merchant explains to SBB.

As a result, rebar has also softened, with mills now quoting €270-290/t ex-works as a base price and stockists offering at as low as €250/t ex-works base price. Delivered prices from mills are now €530-540/t ($716-730/t) del, down from a maximum transaction price of €560/t del.

“Prices have decreased for exports as well, as demand remains weak in Algeria and other export markets,” one mills source says. “Spanish mills have tried to sell to Saudi Arabia lately, but face competition from the Turkish producers,” the source adds. Export prices are somewhere around €510-530/t fob, sources concur.

Rebar prices are likely to fall further and producers are concerned by the rapid drop in scrap and rebar prices in Spain. “Prices are dropping too quickly compared to other markets in Europe, mills should hold on to prices better,” one source says.